Banking System in

India

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BANKING SYSTEM IN INDIA

Reserve
Bank of India

A. Commercial B. Co-operative C. Regional Rural D. Local Area

Banks Banks Banks (RRBs) Banks

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Classification of Commercial
Banks (by Ownership)

Commercial Banks

PUBLIC
PRIVATE FOREIGN BANKS REGIONAL RURAL
SECTOR BANKS LOCAL AREA BANKS
SECTOR BANKS BANKS (RRBS)
(27) (30) (4)
(22) (88)

New Private
Old Private
Sector Banks
Sector Banks
(7)
(15)

Note: Figures in brackets indicate number of respective institutions as on March 31,

2009. 3
 Classification of Commercial Banks
Continued
 Public Sector Banks (27)
1. Nationalized Banks (19)
2. State Bank of India and its Associates (7)
3. IDBI (1)
 Private Sector Banks (22)
1. Old Generation Private Banks(15)
2. New Generation Private Banks(7)
 Foreign Banks (30)
 Local Area Banks (4)
Source: RBI: Report on Trend and Progress of Banking in India, 2008-2009
Note : Figures in brackets indicate number of banks in each group.

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 BANKS BY INCLUSION IN SECOND SCHEDULE OF RBI
ACT, 1934
(AS ON MARCH 31, 2008)

Scheduled
Banks in India

Scheduled
Scheduled
Commercial Banks
Co-operative Banks

Private Scheduled Urban Scheduled State

Public Sector Foreign Regional
Sector Banks Co-operative Co-operative
Banks (27) Banks in India (30) Rural Banks (88)
(22) Banks (53) Banks (31)

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CONDITIONS FOR INCLUSION OF BANKS
IN SECOND SCHEDULE OF RBI ACT, 1934
[Section 42 (6) (a) of RBI Act, 1934.]

 PAID-UP CAPITAL & RESERVES  RS 5 LAKHS

 AFFAIRS NOT CONDUCTED IN A MANNER

DETRIMENTAL TO INTERESTS OF THE BANK’S
DEPOSITORS

 MUST BE ONE OF THE FOLLOWING :

 A COMPANY AS DEFINED IN COMPANIES ACT, 1956
 STATE CO-OEPRATIVE BANK OR PRIMARY CO-OPERATIVE
BANK OR AN INSTITUTION NOTIFIED BY THE CENTRAL
GOVT. IN THIS BEHALF
 CORPORATION OR A COMPANY INCORPORATED BY OR
UNDER ANY LAW IN FORCE IN ANY PLACE OUTSIDE INDIA.

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SHORT TERM AND MEDIUM-TERM RURAL CREDIT SYSTEM

NABARD

COMMERCIAL REGIONAL STATE CO-

Local Area
BANKS RURAL BANKS OPERATIVE
Banks (RRBs) BANKS

DIST. CENTRAL CO-OP.

BANKS (DCCBs)

PRIMARY AGRI. CREDIT SOCIETIES (PACSs)

FARMERS’ SERVICE SOCIETIES (FSSs)
LARGE-SIZED ADIVASI MULTIPURPOSE
SOCIETIES (LAMPSs)

RURAL BORROWERS
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LONG-TERM RURAL CREDIT DELIVERY SYSTEM
NABARD

COMMERCIAL REGIONAL STATE CO-OP. AGRI &

BANKS (79) RURAL BANKS RURAL DEV. BANKS
(RRBs) (88) (SCARDBS) (20)

PRIMARY CO-OP
AGRI. & RURAL DEV.
RURAL SECTOR BANKS (PCARDBs)
BORROWERS (697)

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 PATTERN OF THE CO-OPERATIVE CREDIT INSTITUTIOINS IN
INDIA

COOPERATIVE CREDIT INSTITUTIONS

RURAL CO-OPERATIVE URBAN CO-OPERATIVE BANKS

CREIDT INSTITUTIONS (also known as PRIMARY COOP BANKS)

SHORTTERM STRUCTURE LONG TERM

STRUCUTRE

STATE CO- DISTRICT CENTRAL PRIMARY

OPERATIVE CO-OPERATIVE BANKS AGRICULTURAL CREDIT
BANKS (31) (370) SOCIETIES (97,000)

STATE CO-OPERATIVE PRIMARY CO-OPERAITVE

AGRICULTURE AND RURAL AGRICULTURE AND RURAL
DEVELOPMENT BANKS (20) DEVT. BANKS (697) 9